Navigating the Correcting Real Estate Market: How to Price Your Home Right

By Kandie Frederick

Growing up on the central coast, Kandie is a third generation family in the North County and a second generation family in real estate. Joining Country Real Estate in 2000, and graduating from Cal Poly in San Luis Obispo, she brings a background of Agricultural Business to combine with her knowledge of the local real estate market. Working with her family and their decades of local real estate development, she is deeply connected to the roots of our community and its growth.
“This area continues to grow as people discover what a great travel destination it is, and what a great wine region it has become. Eventually, they realize what a great place it is to live and work as well. Adapting to the needs of our clients in a changing environment is always a priority. We remain the longest standing brokerage in a community we are deeply invested in. Our longevity is attributed to our innate ability to understand the North County: its people, its properties, and its culture.” -Kandie

The real estate market can be a dynamic and ever-changing landscape. If you’re considering selling your home, you might be wondering how to price it right, especially in a correcting market. In recent times, we’ve seen decreasing sales, rising interest rates, and increasing inventory, leading some to speculate about a housing market crash. However, it’s essential to understand that the market is not crashing but rather correcting. So, how should sellers price their homes to succeed in this shifting environment?

1. Avoid pricing too high. One of the first pieces of advice for sellers is not to price their homes too high in the current market. In a correcting market, the price has become more of a marketing tool than ever before. The goal is to reach the largest pool of potential buyers. While there’s still potential for prices to rise, an initial high price may deter buyers from considering your property. If you do decide to lower the price later, the market dynamics may have shifted, making it a challenging situation.

2. Consider pricing slightly below market value. In a shifting market, an effective strategy is to price your home slightly below market value intentionally. This might seem counterintuitive, but it ensures that your property becomes the most attractive deal in your area. When you price below market value, you attract a higher volume of interested buyers, creating competition. This competition can naturally drive the price up to or even above market value, benefiting the seller.

3. Work with a real estate professional. One of the most crucial steps in pricing your home correctly is to work with a real estate professional. A professional can provide invaluable insights into the local market and access market data that can guide your pricing strategy. They will help you find the Goldilocks price—neither too high nor too low—ensuring your property stands out in the market.

In a correcting real estate market, sellers can still achieve fantastic results with the right pricing strategy. Whether you choose to avoid pricing too high, consider pricing slightly below market value, or work with a real estate professional, doing your research and pricing your home correctly is essential. If you’d like to discuss which pricing strategy might be best for your home in today’s market, please don’t hesitate to call or email us. Our team is here to help you navigate the changing real estate landscape effectively.